( BEIJING)– China on Wednesday demanded Washington stop “oppressing Chinese companies” after U.S. regulators stated telecom equipment suppliers Huawei and ZTE to be national security hazards.
The Federal Communications Commission on Tuesday blocked the Chinese suppliers from receiving aids from a federal government fund, stepping up efforts to restrict their access to the U.S. market.
A foreign ministry representative accused Washington of “abusing state power” to harm Chinese business “with no proof.”
” We when again urge the United States to stop abusing the concept of nationwide security, deliberately discrediting China and unreasonably oppressing Chinese companies,” said the representative, Zhao Lijian.
U.S. regulators say Huawei Technologies Ltd., the greatest global maker of telecom switching equipment, and its smaller Chinese competitor ZTE Corp. are controlled by the ruling Communist Party and state they might assist in Chinese spying.
Huawei and ZTE reject the U.S. accusations. Huawei’s founder, Ren Zhengfei, said last year he would decline official needs to expose its customers’ tricks regardless of a law that requires Chinese companies to cooperate with intelligence companies.
The FCC said cash from its $8.3 billion-a-year Universal Service Fund, which supports equipment purchases for some carriers, may no longer be used to purchase Huawei or ZTE devices.
The FCC “has designated Huawei and ZTE as nationwide security threats,” stated the company’s chairman, Ajit Pai, in a declaration. He said the business “threaten our nationwide security.”
The choice impacts primarily little, rural carriers since significant U.S. phone companies do not utilize Chinese equipment.
The FCC had previously disallowed Huawei and ZTE from receiving other federal government subsidies.
Congress enacted a law in March that will provide as much as $1 billion for carriers to replace Chinese-made equipment.
The Trump administration is lobbying its European and other allies to avoid Huawei as they upgrade to next-generation, or 5G, telecom networks.
An assistant secretary of state, Keith Krach, stated last week Washington may be ready to help other countries spend for 5G equipment from European competitors Nokia Corp. and LM Ericsson to prevent buying Huawei technology.
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